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Fortuna council to solicit public, nonprofit and private proposals to lease River Lodge after wide community input
Summary
Council directed staff to solicit, vet and return with evaluation criteria for lease proposals for the River Lodge, after hearing proposals from the Fortuna Chamber, Fortuna Union High School District, and private operators. Staff noted the lodge has required nearly $1 million in subsidy over five years and the adopted budget assumes a lease by Jan. 1, 2027.
The Fortuna City Council on June 15 directed staff to solicit and evaluate proposals from public entities, nonprofits and private operators for a lease of the River Lodge, following extensive public comment from multiple local organizations and residents.
Staff reminded the council that, over the past five years, the River Lodge required nearly $1 million in general fund subsidy. The city's adopted budget assumes transitioning away from city-operated management with a lease in place by Jan. 1, 2027 to materially reduce or eliminate that subsidy.
Council heard multiple proposals and public arguments at the meeting. Felicia Thompson, CEO of the Fortuna Chamber of Commerce and Visitors Center, asked for time to present a plan to relocate the Chamber to the River Lodge and to continue operating it as an event center to boost tourism and transient-occupancy tax (TOT) revenue. Representatives and trustees from the Fortuna Union High School District urged the council to pursue a lease with the district, saying the district would keep the facility available for community rentals, use the site for career and technical education (CTE) courses and professional-development conferences, and provide stable public oversight.
A private applicant, Erica Thompson, described a startup proposal to run the River Lodge as a revenue-generating event venue and said she would make it available as an emergency command center to the city if needed. City staff noted an unsolicited private proposal has been received but that the business entities referenced in the proposal do not yet exist; staff recommended that any private or nonprofit proposal be subject to due diligence, including financial-capacity review and credit checks, and evaluation by Redwood Region Economic Development Commission (REDAC) or North Edge.
Council members expressed a desire for transparency and for staff to give potential proposers a fair window to submit materials. Council voted unanimously to direct staff to accept proposals from public entities, private operators and nonprofits, to develop evaluation criteria with input from REDAC/North Edge, and to return with a recommended process and any necessary vetting prior to final action. Staff said they would aim to collect proposals within a few weeks and continue updates at the next available council meeting.
The council did not finalize a lease tonight; the action directs staff to create a competitive, vetted process to compare options including the school district, the chamber and private operators.
